The Government must reassure taxpayers that high-speed rail is a worthwhile
project.

The Government is now expected to approve the construction of HS2, the high-speed rail line that is predicted to cut 35 minutes off the train journey from London to Birmingham. Once that link is constructed, ministers say, they will fund an extension of the line to Manchester and stations in Yorkshire. The total cost is estimated to be £32 billion. But we can be sure that the actual cost will be much higher. Almost every major infrastructure project financed by government over the past 40 years has gone over budget, often costing taxpayers at least twice the “absolute maximum” that politicians had confidently predicted. That is why it is so important that, before work starts, it is clear that the expenditure will be worth it – not just in its own terms, but when all the alternative uses for the money are also considered.

We do not think the Government has yet shown that HS2 passes that test. We recognise that building the new line may help to spread economic growth to the Midlands and further north. But the claim, made by HS2’s enthusiasts, that it will lead to the creation of “a million extra jobs” is ludicrous. Even much lower figures for new jobs are highly dubious. Holland’s experience with building a link similar to HS2 has been disastrous: passengers there have not been willing to pay the extra it costs to buy a ticket, and Dutch taxpayers now have to pour yet more money into a white elephant that few people use.

We do not say that this will happen with HS2 in Britain. We only argue that the economic case for building it has not yet been made. The Government must produce convincing figures that show taxpayers will receive value for money, before we see billions of scarce public funds disappear into the scheme.